Form 4: Freshworks Director Converts Restricted Stock Units and Class B Shares to Class A Common Stock

Freshworks Inc. Director Barry L. Padgett converted 1,570 Restricted Stock Units into Class B Common Stock and subsequently converted 1,570 shares of Class B Common Stock into Class A Common Stock on June 28, 2025.

Summary

• Barry L. Padgett, a Director of Freshworks Inc. (FRSH), reported changes in his beneficial ownership of company securities.
• On June 28, 2025, Padgett converted 1,570 Restricted Stock Units (RSUs) into 1,570 shares of Class B Common Stock.
• Following this transaction, Padgett beneficially owns 3,120 Restricted Stock Units.
• Also on June 28, 2025, Padgett converted 1,570 shares of Class B Common Stock into 1,570 shares of Class A Common Stock.
• After this conversion, Padgett beneficially owns 83,599 shares of Class B Common Stock.
• Each Restricted Stock Unit represents a contingent right to receive one share of Class B Common Stock.
• The shares of Class B Common Stock underlying the RSU award vest in equal monthly installments over 48 months following August 28, 2021, subject to continued service.
• Each share of Class B Common Stock held by the Reporting Person will automatically convert into one share of Class A Common Stock upon the sale or transfer, subject to certain exceptions, and can also be converted at any time at the option of the Reporting Person.

Sentiment

Score: 5

Explanation: Neutral. A Form 4 filing primarily reports insider transactions and does not typically convey positive or negative sentiment about the company's performance or outlook. The transactions reported are routine for equity compensation.

Positives

• The conversion of Class B Common Stock to Class A Common Stock can increase liquidity for the director's holdings.
• The vesting and conversion of RSUs indicate continued service and alignment of the director's interests with shareholders.

Future Outlook

No forward-looking statements or guidance regarding the company's financial performance or strategic outlook are provided in this transaction report.

Industry Context

This Form 4 filing reports routine insider transactions, specifically the conversion of equity compensation. Such conversions are common for directors and executives, particularly in companies that utilize dual-class stock structures, allowing them to convert vested equity into a more liquid class of stock.

Comparison to Industry Standards

• The reporting of insider transactions via Form 4 is a standard regulatory requirement across all publicly traded companies in the U.S.
• The use of Restricted Stock Units (RSUs) as a form of equity compensation is a common practice in the technology sector, aligning executive incentives with long-term shareholder value.
• The conversion of Class B Common Stock to Class A Common Stock is a typical mechanism for insiders in companies with dual-class share structures to facilitate liquidity, consistent with practices observed in many growth-oriented tech firms.

Stakeholder Impact

• Shareholders: Provides transparency on insider holdings and transactions, which can influence investor perception of management alignment and confidence in the company.

Next Steps

• Continued vesting of the remaining 3,120 Restricted Stock Units for Barry L. Padgett.
• Potential future conversions of Class B Common Stock to Class A Common Stock by the reporting person as needed for liquidity or other purposes.

Key Dates

Keywords

Freshworks Inc., FRSH, Form 4, SEC filing, Insider transaction, Restricted Stock Units, RSU conversion, Class B Common Stock, Class A Common Stock, Director ownership, Barry L. Padgett, Equity compensation